Previous studies have shown that there is an obvious coupling relationship between the installation location of the external cathode and the magnetic separatrix in the plume region of Hall thruter. In this paper, the particle-in-cell simulation method is used to compare the thruster discharge process under the conditions of different position relationships between the cathode and the magnetic separatrix. By comparing the distribution of electron conduction, potential, plasma density, and other microscopic parameters, we try to explain the formation mechanism of the discharge difference. The simulation results show that the cathode inside and outside the magnetic separatrix has a significant effect on the distribution of potential and plasma density. When the cathode is located outer side of the magnetic separatrix, the potential above the plume region is relatively low, and there is a strong potential gradient above the plume region. This potential gradient is more conducive to the radial diffusion of ions above the plume, which is the main reason for the strong divergence of the plume. The distribution of ion density is also consistent with the distribution of potential. When the cathode is located outer side of the magnetic separatrix, the radial diffusion of ions in the plume region is enhanced. Meanwhile, by comparing the results of electron conduction, it is found that the trajectories of electrons emitted from the cathode are significantly different inner and outer sides of the magnetic separatrix. This is mainly because the electrons are affected by the magnetic mirror effect of the magnetic tip, which makes it difficult for the electrons to move across the magnetic separatrix. It is the main reason for the difference in potential distribution. In this paper, the simulation results of macroscopic parameters under several conditions are also compared, which are consistent with the experimental results. The cathode is located inner side of the magnetic separatrix, which can effectively reduce the plume divergence angle and improve the thrust. In this paper, the cathode moves from R = 50 mm to R = 35 mm along the radial direction, the thrust increases by 3.6 mN, and the plume divergence angle decreases by 23.77%. Combined with the comparison of the ionization region and the peak ion density, it can be found that the main reason for the change in thrust is the change in the radial diffusion of ions in the plume region.